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Sipp transfers up 30% year-on-year

Self-invested personal pension transfer volumes are up 30 per cent year-on-year, according to figures published by Origo.

The data from the firm’s Options Transfers service shows overall transfer volumes are up by 15 per cent on 2016 with £31bn transferred from January to December 2017 compared to £24bn the previous year.

Sipps are the biggest beneficiary of transfers as they accounted for 51 per cent of all transfers during 2017.

Since 2014, when the Pensions Freedoms were first announced, volumes of transfers into Sipps have almost doubled (98 per cent) and values have more than doubled (121 per cent).

Data also show that the value of the transactions through the service is also rising – up 27 per cent on 2016 and 44 per cent since 2015, when the Pension Freedoms were introduced.

The average payment amount in a pension-to-pension transfer was £57,000.

One reason for the rise in value is the growing number of transfers to Sipp providers, which tend to be higher value tickets.

Where are all the Sipp sales? UK pension hotspots mapped

Consequently Sipps increased 39 per cent in value during 2017.

Origo managing director Anthony Rafferty says: “As more and more people have sought to move their pension money where it can benefit from the greater flexibility offered under the new rules, so the volumes have risen.

“Transfers are likely to continue as more people reach the age at which they will want to consider transferring their pension to access the Freedoms. Our data shows that the average age for people transferring their pension is 53.

“Sipps in particular have seen an influx of business, with an increase of 50 per cent in transfers through the Options Transfers service since 2015 and a 67 per cent increase in values in the same period.”

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